Prices Increasing soon Prices Increasing Soon

Terminal Illness Meaning And Benefit In Term Insurance

A terminal illness diagnosis can have a devastating impact on a person and his/her family. Regular hospital visits, doctor treatments, surgeries, medications, and other related expenses can affect his/her finances in such cases. With a good lifestyle and other precautions to avoid health-related issues, one should also buy terminal illness benefits in term insurance. This rider can help the policyholder secure themself for the long term, pay off any expensive hospital bills, and also seek medical help outside India without worrying about their financial situation, which can ultimately improve their survival chances.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
58.9 Million
Registered Consumer
51
Insurance Partners
26.4 Million
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

These benefits help to secure our lives while protecting our families financially. Let’s understand in detail the terminal illness meaning and its benefits in this article.

What is Terminal Illness?

A terminal illness is a condition or an illness that can’t be cured and is likely to lead to death.

Terminal Illness Meaning – A terminal illness in term insurance is considered valid if two certified doctors confirm the policyholder’s diagnosis of a terminal illness, i.e., an untreatable condition that reduces the policyholder’s life expectancy to less than 6 months. In simpler words, the terminal illness meaning in insurance is that if the policyholder is diagnosed with a terminal illness during the policy term, he/she will either receive the entire or a part of the base sum assured to seek better medical treatment and cover the hospital charges. The payout amount on the diagnosis of a terminal illness depends on the policy’s T&Cs, and thus, you should go through the policy documents before adding the rider to the base plan.

one crore term plan
plus

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 16/day+

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day+

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day+

What is Terminal Illness in Term Insurance?

Now that we have a clear insight on what is the terminal illness meaning, let’s understand the relevance and importance of terminal illness in term insurance.

A terminal illness benefit is an insurance rider that is defined as an attachment to an existing term insurance plan that provides coverage in addition to the policy. Riders are mainly designed to enhance coverage by paying an additional premium. Terminal illness meaning – It is an untreatable condition, i.e. it cannot be cured and is likely to lead to the patient’s death. And, in term insurance, the terminal illness benefit provides you with a tax-free lump sum amount in case of the diagnosis of a terminal illness. In case you are diagnosed with a terminal illness, you will be provided with a guaranteed amount which, in the future, can be used to take care of any hospital bills or medical expenses. As we already know, the medical treatment for a terminal illness is expensive, but the early payout on terminal illness riders can help you pay off the hefty bills without it draining your savings.

How Does Terminal Illness Benefit Work in Term Insurance?

Let us understand how the accelerated death benefit rider works using an example:

Suppose a Rajan bought a 1 crore term insurance with the optional terminal illness cover included in the base plan. Now Rajan pays the minimal premium for the terminal illness rider (refer to terminal illness meaning mentioned above for a better understanding) along with the base premiums and receives enhanced coverage for the entire policy term. After 5 years, Rajan is diagnosed with a heart disease that is untreatable and is termed by doctors as terminally ill with only 6 months to live. The insurer pays the entire 1 crore sum assured in advance, and the policy terminates. Rajan uses the payout amount to seek medical help from specialists in other parts of the world and gets world-class treatment without worrying about his finances.

one crore term plan

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @ ₹449/month+

Get an online discount of upto 10%+

Compare 40+ plans from 15 Insurers

+Standard T&C Applied

What is the Importance for Terminal Illness in Term Insurance?

Now that you’ve understood the terminal illness meaning, let’s discuss the terminal illness benefit and how it's an important term insurance rider because of the following reasons:

  • Financial Security: The accelerated death benefit rider or the terminal illness benefit provides the policyholder and their family with the financial aid that they need to take care of their hospital bills, medication costs, and lifestyle expenses and pay off any remaining financial needs and obligations.

  • Long Protection: Terminal illness meaning in term insurance is quite simple. It provides cover against the terminal illness for the long term. Most term insurance plans offer protection against terminal illness till 85 years of age of the policyholder.

  • Secure Savings: With the terminal illness benefit payout, you would not have to dip into your savings to pay for any expenses. You can keep your savings safe and secure and pay for your financial obligations using the benefit amount.

  • Pay off Hefty Bills: The payout can help the policyholder seek the best medical help available, whether it is in India or overseas. They can simply pay for the expensive hospital bills using the payout received and improve their chances of survival.

  • Peace of Mind: Knowing that there is a terminal illness benefit in place provides policyholders with peace of mind. It relieves the anxiety and uncertainty associated with the financial implications of a terminal diagnosis. This peace of mind allows individuals to focus on their emotional well-being, spend quality time with their loved ones, and make important end-of-life decisions without the added stress of financial concerns.

What Are The Benefits Of Terminal Illness Rider? 

Terminal illness benefit is an important term insurance rider and is needed in your base term insurance plan to cover multiple risks. Here is a list of all the ways in which a terminal illness or accelerated death benefit rider can benefit you during the policy term:

  1. Higher Sum Assured with Low Premium Rates

    Terminal illness benefits or the accelerated death benefit rider in term insurance plans are either inbuilt within the plan or are available at really affordable premium rates. This term insurance rider can be added to the base term plans at nominal premiums, which can be paid along with the base premiums and receive a large life cover at really low premiums.

  2. Acts as an Income Replacement 

    Terminal illness benefits taken along with the term insurance plan offer various advantages, such as it protects you against any uncertain event and also covers routine medical test payments and medical expenses. Some of the term insurance plans also offer an option of ROP i.e., Return of Premium. If in case you outlive the plan, you will get all the premium amounts that you have paid throughout the policy tenure at the time of maturity. Many people are rendered unable to continue their jobs after being diagnosed with a terminal illness, and thus the terminal illness benefit payout can help them meet their daily expenses and pay their rent and child’s fees.

  3. Protects Against Life-Threatening Medical Situations 

    The terminal illness benefit payout can help the policyholder fund the expensive treatments and surgeries to improve their condition and pay for new consultations overseas for a better chance at survival. With this payout, the policyholder can focus on getting the required treatments without worrying about financial issues.

  4. Pay off Debts and Loans

    The policyholder can use the accelerated death benefit rider payout to pay off their remaining loans and debts like student loans, home loans, car loans, or any other debts they may have availed of. This ensures that the policyholder's family isn’t burdened with paying off these loans and liabilities in the policyholder’s absence.

  5. Double Tax Benefits 

    Terminal illness benefits in a term insurance plan provide you with dual tax benefits. The premiums paid for these terminal illness coverages and a term plan are exempted in U/S 80C and 80D of the Income Tax Act, 1961. It is important to note that the term insurance tax benefits are subject to change as per the prevailing tax laws.

    *Note: If you want to know your term insurance premium, quickly check it using the term insurance calculator.

Terminal Illness vs Critical Illness: What Is The Difference?

It is important to understand the terminal illness meaning and critical illness meaning before we understand their core differences. Here are the differences between terminal illness and critical illness

Parameter Terminal Illness  Critical Illness
Meaning The terminal illness meaning is as follows:
It is a medical condition with no cure that can ultimately result in death. Despite medical efforts, the illness will worsen and impact overall well-being. Examples include advanced cancer, end-stage organ failure, advanced Alzheimer's disease, and neurological diseases.
The critical illness meaning is as follows: Critical illness is a serious medical condition that urgently needs attention and can severely harm vital organs. Immediate medical help is crucial to prevent worsening and save your life. Examples include cancer, stroke, heart attack, and organ failure.
Focus of treatment The treatment can help with symptoms, offer comfort, and enhance your quality of life. The treatment aims to maintain good health and save your life.
Recovery No chance of getting better, and it may lead to unfortunate death. Likely to recover if treated promptly.
Insurance claim benefits For terminal illness insurance benefits, you can claim if diagnosed with a company listed terminal illness and your life expectancy is less than 12 months. Your critical illness insurance benefits, you can claim when diagnosed with a company listed critical illness, and hospitalization is not required to claim the benefit.
Sum assured in Term Insurance Terminal illness insurance may cover up to 50% (or sometimes 100%) of the sum assured for treatment. In case of 50% payment, the rest will be paid to nominees upon death. 

Critical illness insurance offers the sum assured as a lump sum or another payout for medical and hospitalization costs.

*Note: You should first know what is term insurance and then buy term plan with terminal illness and critical illness benefits.

Is Accelerated Terminal Illness Benefit Same As Terminal Illness Benefit?

The terminal illness benefit is a term insurance rider that you can add to your base term plan that provides coverage in addition to the policy if you are diagnosed with a terminal illness. Whereas an accelerated terminal illness benefit is a rider in term and life insurance plans that allow individuals with a terminal illness to receive a part of their death benefit before they unexpectedly pass away. The purpose of an accelerated terminal illness benefit is to assist in covering medical expenses and related costs. However, receiving this rider benefit early, i.e. during diagnosis/treatment of the policyholder, results in either a complete or certain deduction of the total death benefit amount, depending on the T&C of different insurers.

Wrapping It Up!

Terminal illness meaning and benefits in a term insurance plan are beneficial as the additional coverage protects you against different risks. If you want to buy term plan with terminal illness benefits, choose a plan that best suits your requirements. These rider plans offer comprehensive coverage to ensure that you should always remain safeguarded against critical times.

FAQs

  • Q: What is the difference between terminal illness vs critical illness in term insurance?

    Ans: Terminal illness meaning in term insurance is that it is an add-on rider that provides a part or whole sum assured in advance on the diagnosis of the terminal illness during the policy term. On the other hand, critical illness riders pay the rider sum assured on the diagnosis of critical illnesses listed under the plan. The critical illness rider usually provides the rider sum assured on top of the base sum assured, whereas the terminal illness amount is the base sum assured paid in advance.
  • Q: What will happen if I claim terminal illness in term insurance?

    Ans: On placing the claim for terminal illness benefit amount, the insurer will review the validity of the claim. On successful verification, the terminal illness benefit amount will be paid to the policyholder, and the policy will terminate as per the policy’s Terms and Conditions.
  • Q: Can I add a terminal illness rider to all types of term insurance plans?

    Ans: You can add the terminal illness riders to only term plans that offer terminal illness as an optional benefit. Some term plans have the terminal illness rider inbuilt, whereas others do not offer the option of including the accelerated death benefit rider in the base plan.You can read the complete artice to understand the terminal illness meaning.
  • Q: What is terminal illness insurance coverage?

    Ans: Terminal illness insurance coverage refers to the additional coverage that you can opt for by adding the terminal illness rider to the base plan. This rider provides a part or whole of the base sum assured as an accelerated benefit on the diagnosis of a terminal illness during the policy term.
  • Q: What is a list of terminal illness in term insurance in India?

    Ans: There is no terminal illnesses list in India. However, if two IMA-certified doctors diagnose the policyholder with a terminal illness, they can claim the benefit amount.
  • Q: Is critical illness insurance subject to taxes?

    Ans: Critical illness coverage typically falls under Section 80D, allowing a tax deduction of Rs. 25,000 (Rs. 50,000 for senior citizens) on health insurance claims. If your critical illness claim exceeds Rs. 25,000, it may be taxable.
  • Q: What is terminal illness meaning?

    Ans: Terminal illness meaning is a medical condition that has no cure and can result in untimely death.

Premium By Age

Choose Term Insurance Plan as per you need

Plans starting from @ ₹473/Month*
Term Insurance
4 crore Term Insurance
Term Insurance
6 Crore Term Insurance
Term Insurance
7 Crore Term Insurance
Term Insurance
7.5 crore Term Insurance
Term Insurance
8 Crore Term Insurance
Term Insurance
9 crore Term Insurance
Term Insurance
15 Crore Term Insurance
Term Insurance
20 Crore Term Insurance
Term Insurance
25 Crore Term Insurance
Term Insurance
30 Crore Term Insurance
Term Insurance
15 Lakh Term Insurance
Term Insurance
60 Lakh Term Insurance

Term insurance Articles

  • Recent Article
  • Popular Articles
19 Jul 2024

ICICI 5 Crore Term Insurance

Securing your family's financial future requires careful

Read more
19 Jul 2024

Bajaj 1 Crore Term Insurance

Ensuring your family's financial security requires indepth and

Read more
02 Jul 2024

Term Life Insurance in Daman and Diu 2024

Daman and Diu, a union territory in western India, consists of

Read more
02 Jul 2024

Term Life Insurance in Andhra Pradesh 2024

Andhra Pradesh, a state in the southern coastal region of India

Read more
02 Jul 2024

Term Life Insurance in Sikkim 2024

Sikkim is a Northeastern Indian state bordered by Bhutan, Tibet

Read more

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more

'Har Family Hogi Insured' Policybazaar's Vision...

Empowering Every Household: policybazaar's Commitment to Nationwide Coverage In a visionary move towards a

Read more

2 Crore Term Insurance Plan

Individuals can choose to buy term plan that offers a life cover (sum assured) of ₹ 2 crore. These plans are

Read more

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
Need Help? Request Callback
top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL